Financial Daily from THE HINDU group of publications
Wednesday, Aug 17, 2005
Financial Daily from THE HINDU group of publications Wednesday, Aug 17, 2005 |
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Corporate
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New Projects Indo Schottle opens second unit in Pune Our Bureau
Pune , Aug. 16 THE Pune-based Indo Schottle Auto Parts, manufacturer of automotive components, has inaugurated its second facility in Pune. Speaking to newspersons, Mr Vijay Pusalkar, Chairman and Managing Director, said that with this facility, 25,000 sq ft of floor space would be added and total manufacturing capacity increased by 50 per cent. He added that the new premises was a readymade facility formerly occupied by Balaji Composites, which had a US collaboration to manufacture plastic components. The new premises would house the manufacturing facility for the domestic market and the existing facility would be converted into an 100 per cent export-oriented unit. The shift to the new facility for the domestic purpose would be completed within two months, he said. Indo Schottle has an annual installed capacity to manufacture 150 million engine valve collets, 40 million rocker arm screws, and six million parts and assemblies for turbochargers, fuel systems and hydraulics. Mr Pusalkar said that the company would be investing close to Rs 50 crore for further expansion, which would be spread over the next couple of years. This would cater mainly to equipment and infrastructure. With all this in place, the company is targeting turnover of Rs 150 crore by 2008. The investment of Rs 50 crore would be 80 per cent internal accruals and 20 per cent foreign exchange, he added. Mr Pusalkar also said that the company was planning a MoU with Eaton Corporation to manufacture assemblies required for that company's hydraulic business. For this, Indo Schottle would be setting up a separate division; after the division becomes operational, the aim is to export to Eaton from the Pune facility to the tune of Rs 30-50 crore. He added that the next MoU to be signed would be with Honeywell for components and assemblies in the turbocharger area. The contract would be for five different components and would have to be in place by 2006. Another contract with Bosch has already been completed, he said. Mr Pusalkar also said that Indo Schottle has issued 22 per cent stake to a Swiss fund called Crossover for a consideration of Rs 24 crore. The company is also proposing to enter the capital market within the next couple of years, he added.
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